International Consolidated Airlines Group (IAG) Share Price, News & Analysis

Company Overview

International Consolidated Airlines Group, S.A. is a multinational airline holding company with a registered office in Madrid, Spain, and global headquarters in London, England. The company is the result of the 2011 merger of British Airways and Iberia, both flag carriers for their respective countries. Upon completion of the merger, British Airways shareholders owned 55% of the new company which is the 3rd largest carrier globally. The company’s primary listing is on the London Stock Exchange but it is also listed on the Madrid Stock Exchange as well. The company is a constituent of the FTSE 100 and the IBEX 35. Qatar Airways is a major holder of the company and controls more than 25% of the stock as of 2021.

The idea for British Airways was first floated in 1953. The idea was to merge the operations of the British Overseas Airways Corporation and British European Airways which were having a standoff over rights to Cyprus. The idea finally took after the 1969 Edwards report which suggested the nationalization of several British airlines under the management of the British Airlines Board. The British Airways Board allowed the independent operation and branding of the original airlines for several years but soon consolidated the assets under a single brand of British Airways. The company came back to the public market in the early 1980s and has been a major player in the airline industry ever since.

Iberia, or Iberia Airlines, was first formed in 1927 from an investment by private and corporate money. The firm lasted about a year until it was nationalized and consolidated with other Spanish airlines. The brand was revived in 1937 during the Spanish Civil War and operated as a national air carrier until its privatization in 2001. Since then, the company has made aggressive investments in expansions and infrastructure that helped grow it to be Spain’s largest airline. It, along with its low-cost subsidiary Iberia Express, serves 24 domestic and 64 international destinations.

Today, IAG together provides domestic and international air travel across the EU and globally through a network of brands that include but are not limited to British Airways and Iberia. It provides passenger and cargo transportation services as well as tours and vacation packages. The company operates a fleet of 531 aircraft and utilizes a strategy of modernization to control costs. The company’s newest aircraft are up to 20% more efficient than older models. The fleet consists primarily of A320 and A350 as well as Boeing 787 and 777 models.

Key Stats

• Today's Range: 378.70 to 397.80
• 50-Day Range: 341.95 to 410.10
• 52-Week Range: 302.65 to 464.28
• Volume: 2.12 billion shs
• Average Volume: 65.04 million shs
• Market Capitalization: £17.70 billion
• P/E Ratio: 5.69
• Dividend Yield: 2.22%
• Price Target: GBX 466
• Consensus Rating: Moderate Buy

International Consolidated Airlines Group Stock Analysis - MarketRank™

International Consolidated Airlines Group scored higher than 78% of companies evaluated by MarketBeat. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 3.8 / 5
• Analyst Rating: Moderate Buy

Consensus Rating

International Consolidated Airlines Group has received a consensus rating of Moderate Buy. The company's average rating score is 2.60, and is based on no strong buy ratings, 4 buy ratings, no hold ratings, and 1 sell rating.

Upside Potential

International Consolidated Airlines Group has a consensus price target of GBX 466, representing about 21.0% upside from its current price of GBX 385.10.

Amount of Analyst Coverage

International Consolidated Airlines Group has only been the subject of 4 research reports in the past 90 days.

Earnings and Valuation

• Score: 2.5 / 5
• Proj. Earnings Growth: N/A

Price to Earnings Ratio vs. the Market

The P/E ratio of International Consolidated Airlines Group is 5.54, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 44.42.

Price to Earnings Ratio vs. Sector

The P/E ratio of International Consolidated Airlines Group is 5.54, which means that it is trading at a less expensive P/E ratio than the Industrials sector average P/E ratio of about 24.94.

Price to Earnings Growth Ratio

International Consolidated Airlines Group has a PEG Ratio of 0.21. PEG Ratios below 1 indicate that a company could be undervalued.

Price to Book Value per Share Ratio

International Consolidated Airlines Group has a P/B Ratio of 3.96. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

Short Interest

• Score: N/A
• Short Interest Level: N/A

Short Interest

There is no current short interest data available for IAG.

Dividend

• Score: 1.7 / 5
• Dividend Strength: Weak

Dividend Yield

International Consolidated Airlines Group pays a meaningful dividend of 2.22%, higher than the bottom 25% of all stocks that pay dividends.

Dividend Growth

International Consolidated Airlines Group does not have a long track record of dividend growth.

Dividend Coverage

The dividend payout ratio of International Consolidated Airlines Group is 15.54%. This payout ratio is at a healthy, sustainable level, below 75%.

News and Social Media

• Score: 2.1 / 5
• News Sentiment: 0.30

News Sentiment

International Consolidated Airlines Group has a news sentiment score of 0.30. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a lower news sentiment than the 0.56 average news sentiment score of Industrials companies.

News Coverage This Week

MarketBeat has tracked 7 news articles for International Consolidated Airlines Group this week, compared to 3 articles on an average week.

Search Interest

Only 16 people have searched for IAG on MarketBeat in the last 30 days. This is a decrease of -48% compared to the previous 30 days.

Company Ownership

• Score: 0.4 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, International Consolidated Airlines Group insiders have not sold or bought any company stock.

Percentage Held by Insiders

0.19% of the stock of International Consolidated Airlines Group is held by insiders.

Percentage Held by Institutions

30.43% of the stock of International Consolidated Airlines Group is held by institutions.

Industry, Sector and Symbol

• Stock Exchange: LON
• Sector: Industrials
• Industry: Airlines
• Sub-Industry: Precious Metals
• Current Symbol: LON:IAG
• CIK: N/A
• Web: www.es.iairgroup.com
• Phone: +44-20-85642800
• Fax: N/A
• Employees: 5,360
• Year Founded: N/A

Price Target and Rating

• Average Price Target for International Consolidated Airlines Group: GBX 466
• High Price Target: GBX 600
• Low Price Target: GBX 355
• Potential Upside/Downside: +17.9%
• Consensus Rating: Moderate Buy
• Rating Score (0-4): 2.60
• Research Coverage: 5 Analysts

Profitability

• EPS (Trailing Twelve Months): GBX 69.50
• Trailing P/E Ratio: 5.69
• Forward P/E Ratio: 9.27
• P/E Growth: 0.21
• Net Income: £3.43 billion
• Net Margins: 11.41%
• Pretax Margin: N/A
• Return on Equity: 75.16%
• Return on Assets: 5.44%

Debt

• Debt-to-Equity Ratio: 261.79
• Current Ratio: 0.70
• Quick Ratio: 0.63

Sales & Book Value

• Annual Sales: £33.35 billion
• Price / Sales: 0.53
• Cash Flow: GBX 549.04 per share
• Price / Cash Flow: 0.72
• Book Value: GBX 97.37 per share
• Price / Book: 4.06

Miscellaneous

• Outstanding Shares: 4,479,711,000
• Free Float: N/A
• Market Cap: £17.70 billion
• Optionable: Not Optionable
• Beta: 1.33